Smart Marketing From GM?

Hat’s off to Mark LaNeve, GM’s VP for North American sales, service and marketing.   

GM is launching a monthly email to subscribers of its OnStar service.  (read release here) 

This is a perfect example of marketing that drives value both ways.  The customer benefits because they get a communication that is specific to their car.  The email will tell users the status of their engine, transmission, brakes, airbags and other components.  That seems like a good use of a database to me, and something that can be truely valuable to the car owner.

We’ve been working to get the attention of someone at AutoZone about this idea for a couple of years…ever since I heard the CEO say on CNBC there is about $60 Billion in un-done auto maintenance and repair each year.

I can only imagine how much incremental revenue GM is going to drive into it’s own shops each year with this program….and the customer is actually paying $16.95 to participate.   

That’s a heck of an opportunity for anyone in this business and congratulations to GM for being the first to recognize it.

Comments

[Jacob Leffler]

This is a great service for the dealerships. The dealerships make a much higher margin on service than they do on selling new cars.

[Tamika]

I agree I believe that the e-mail system that GM is using to communicate with their customers is a brilliant idea. Each year technology changes the way we do business and very soon everything will virtually operate through e-commerce. I like the idea that GM customers receive an e-mail letting them know the maintenance status of their vehicles. Im sure with a little tailoring my company can adopt this idea to increase the value of its services with its customers as well.

Signed,
A marketing student

[Shig Odani]

I'm taking this from something I read a while ago, but the selling process for automobiles has traditionally ended when the customer rolls out of the dealership parking lot with their new car. However, that certainly doesn't mean that the selling has to end there.

I think that there is some statistic that says that of all Ford (or maybe it was GM) car sales, the majority is from existing owners. That's a pretty compelling reason to recontact existing owners.